Tapestry falls as Barclays downgrades to 'equal weight' on demand risks
23/01/2023 11:55
** Shares of luxury handbag maker Tapestry Inc TPR.N down
~2% at $42.90 premarket
** Barclays downgrades TPR stock to "equal weight" from
"overweight"; raises PT to $43 from $38
** Our quarterly handbag promo tracker suggests there could
be demand risk in the accessory and handbag segment as the
pressure of inflation creeps to higher household-income brackets
- brokerage
** Says tracker shows "deeper" promotions at TPR, driven by
Kate Spade and Coach, for holiday quarter
** Brokerage sees certain positive impacts to TPR's sales
and margins in 2023
** Says company could benefit from recovery in China, margin
recapture from freight, supply chain and input cost inflation
** Barclays raises PT on Michael Kors-owner Capri Holdings
Ltd CPRI.N to $72 from $56
** We raise our valuation multiple due to the prospects of
global tourist recovery, which primarily benefits global luxury
brands Versace and Jimmy Choo - Barclays
** Tapestry's shares lost 6.2% in 2022, while Capri dropped
~12% last year
(Reporting by Granth Vanaik in Bengaluru)
((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth))